BMC Software Announces New Pricing Structure; Value License Agreements Provide Customers with Hardware Flexibility, Budget Predictability

Business Wire, August 24, 1998

HOUSTON--(BUSINESS WIRE)--Aug. 24, 1998--BMC Software Inc. (NASDAQ:BMCS) today announced its innovative new pricing structure in response to customers' needs for configuration flexibility. The company's Value License Agreement (VLA) for distributed systems is an agreement designed to provide customers the flexibility to run BMC Software products as their business changes. The VLA pricing architecture is a multi-year licensing agreement (2 or 3 years) and addresses increasing customer need for simplicity and flexibility.

Customers who have invested in software and hardware asset management infrastructure and thus have the ability to track machine types used in their enterprise may purchase value unit licenses for BMC Software products. They may run the product or products on any combination of machines as long as the sum of value units of these machines does not exceed the total licensed value units. An additional option is available for customers who do not have the ability to track machine types running in their enterprise. Under this option there is no need to know the details of machine type, the customer need only count number of machines running licensed BMC Software products.

"We have been successful due to our use of information technology as a competitive advantage. As technology changes, we must remain flexible in our hardware and software needs," said Brad Boston, executive vice president of The SABRE Group. "BMC Software's new VLA pricing structure allows flexibility to use their industry leading products in a cost effective way."

Among other things, the VLA structure offers customers:

-- Administrative savings due to simpler contracts;

-- Protection against upgrade charges;

-- Price increase protection for the term of the contract;

-- Budget predictability;

-- Economies of scale;

-- Options to protect against software cost surprises resulting from

migration of database or operating systems.

"BMC Software recognizes the need for simplicity in asset management in a distributed environment and is committed to make it easier for customers to do business," said Somesh Singh, BMC Software's director of market and business analysis. "The goal of our new VLA structure is simple -- offer customers simplicity, flexibility, predictability and ease of administration."

The new pricing structure complements BMC Software's new Application Service Assurance (ASA(TM)) strategy. ASA provides extensive business benefits by improving the service information technology delivers to application users. ASA solutions are most effective when widely deployed to cover all critical business applications. With VLA pricing, BMC Software will help its major customers more easily license BMC Software solutions in large complex enterprises that continually change.

Customers can buy products under this program from BMC Software or any of its authorized resellers. Customers who plan to migrate from their current database to a new database during the term of their contract will have the ability to exchange database PATROL(R) Knowledge Modules by paying a one-time fee. On the anniversary date of the contract, the customer provides an inventory or number of servers, depending on which pricing option they have, on which BMC Software products are licensed. The customer then has the option of renewing the VLA with all its benefits or converting to a tier pricing structure, which does not offer the flexibility of the VLA structure.

About BMC Software

BMC Software is the world leader in the development of more than 160 Application Service Assurance solutions -- improving the availability, performance and recoverability of critical applications in complex computing environments. BMC Software is the world's 12th largest independent software vendor and a Forbes 500 company, with revenues exceeding $730 million in fiscal 1998. The company is headquartered in Houston, Texas, with offices worldwide. For more information, please call 800/841-2031 or 713/918-8800 or visit BMC Software on the Web at www.bmc.com.

BMC Software, the BMC Software Logo and all other product or service names are registered trademarks or trademarks of BMC Software Inc. in the USA and in other select countries. (R) and (TM) indicate USA registration or USA trademark. Other logos and product/trade names mentioned are registered trademarks or trademarks of their respective companies. BMC Software is an Equal Opportunity Employer.

CONTACT: BMC Software Inc., Houston

Heather Real, 713/918-1649

heather_real@bmc.com

or

Blanc & Otus

Mindy Cebers, 617/225-9990

mcebers@bando.com